by Jon LeSage, Editor, Used Car Market Reports
Here are a few interesting remarketing news items from this week:
- Dealers are feeling the pinch from the Volkswagen recall over false emissions reporting on its diesel cars – with dealer associations and newspapers around the country reporting VW dealers feeling caught in the middle. We’re starting to see lawsuits filed in the U.S. and Canada over it. In one of these suits, independent dealers sued Volkswagen AG in federal court over losses they say they’ll incur. The proposed class action was filed in a California federal court on behalf of independent car dealers in the state and seeks damages likely to exceed $1 million.
- CPO sales were up during the first half of the year for franchised dealers, according to the latest Pulse report from ADESA Analytical Services. CPO made up 18.5% of used sales this year versus 16.9% last year. Certified vehicles also made up 9.8% of retail used sales through the first half of this year, compared to 8.9% a year ago. Executive VP Tom Kontos thinks CPO has helped support used vehicle values as wholesale supply has grown.
- Truck sales continue to have a bright future in used vehicle values with strong demand and waning supply. In August, two CPO models — GMC Sierra 2500 and Ford F-250 — appeared on the national Top 10 list of most shopped certified models with the lowest supply collected by Autotrader. “Strong overall truck sales, and interest in heftier trucks, are an economic indicator suggesting a healthy construction and house-building market,” says Autotrader senior analyst Michelle Krebs.